One of the Limitations of Financial Ratio Analysis for Not-For-Profit

question 6

True/False

One of the limitations of financial ratio analysis for not-for-profit organizations is that donors may incorrectly assume that there are federal or state laws that govern the percentage of annual revenues that a charity must spend on its programs.

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Definitions:

Free Market Ideas

Economic principles that advocate for minimal government intervention in the marketplace, allowing the forces of supply and demand to determine prices and production.

Private-Sector Management

Management practices and principles used in private businesses, focusing on efficiency, profitability, and market competition.

Mainstream Economics

Refers to the body of knowledge, theories, and models in economics that are widely accepted and taught across prominent universities and colleges.

NLRA

The National Labor Relations Act, a foundational statute in United States labor law which protects the rights of employees to organize and to bargain collectively with their employers.